What do electric Vehicles Offer Us?

Transitioning to an Electric Vehicle
Some Considerations for Policymakers
Rona Cohen
CSG/ERC Energy & Environment Committee Meeting
August 16, 2020
Portland, Maine
 Federal Commitment
 Manufacture Commitments
 State/Local Efforts
 Looking Forward – Broader Public-Policy Benefits of EVs
 Policy Suggestions from Recent CSG/ERC Meetings
Strong Federal Commitment to Creating an
EV Infrastructure
 Recovery Act sending more than $5 billion to electrify transportation sector:
 $2.4 bln to develop EV battery manufacturing plants; $1.4 bln to Nissan for
EV manufacturing plant in TN; $528.7 mln to Fisker for plant in DE; $465
mln to Tesla to revive GM plant in CA ($50 mln from Toyota)
 In MI, 17 new battery plants in operation, under construction or breaking
 Transportation Electrification program developing 20,000 charging stations
 8 demonstration projects to test 13,000 EVs under real weather conditions
 Goals: 30 U.S. EV battery manufacturing plants by 2012; 1 million plug-in
HEVs by 2015; significant job creation, lower dependence on foreign oil
 U.S. Senate: PEVA Act would provide additional $3.6 bln to create “deployment
communities” and subsidize purchase of plug-in EVs and charging infrastructure
 Passed Senate Energy Committee in July 19-4 with bipartisan support
 U.S. Senate STORAGE ACT (s.3617) would offer $1.5 bln in tax credits to
storage projects connected to the power grid
Manufacturer Commitments
 More than 15 major car manufacturers plan to roll out EVs
within the next three years, including these by late 2010:
 Tesla Roadster: Available today. Range: 244 miles
 Nissan Leaf: Late 2010. Range: 100 miles
 Ford Transit Connect (commercial van): Late 2010. Range: 80
 Chevy Volt: Late 2010 (contains a battery pack capable of
driving 40 miles, and a gas-powered onboard generator that
creates electricity to power the engine after the battery has
been depleted; provides an additional 300 mile range)
Public and Private Efforts to Promote EV
Infrastructure: Some Examples
 Many urban areas working to aggressively promote EV charging infrastructure
include San Francisco, Seattle, Portland, Houston , Indianapolis and Orlando
 SF revised building codes requiring that new homes and office buildings be wired
for electric chargers
 States promoting EV infrastructure include:
 CA: Last week announced $108 mln investment in EV battery R&D, worker
training, charging stations
CT: Gov. Rell formed EV Infrastructure Council. Final report due Sept. 1
HI: Aims to have statewide charging infrastructure in place by 2012
MA: MOU with Nissan
MD: Charging stations along I-95
MI: $1 bln in tax credits for companies building advanced storage for EVs
RI: Project Get Ready
WA: Installing charging stations along I-5, from OR to Canada
 Six utilities in the Northeast (serving CT, MA, NH, NY & RI) formed the
Regional Electric Vehicle Initiative in June 2009
Broader Public Policy Benefits: Potential to
Help States Achieve Clean-Energy Goals
 Energy storage is the “Holy Grail” of the electricity
 Through properly managed nighttime charging, EVs
could utilize electricity from wind turbines, where
available, which tends to be more robust at night.
 Creation of a secondary market for EV batteries
could provide needed stationary storage for wind
farms and PV arrays.
 Battery storage is already being tested in conjunction
with wind projects.
 See “Wind Drives Growing Use of Batteries,” NY Times,
July 27, 2010
Broader Public Policy Benefits: Grid Services
 Vehicle-to-Grid (V2G): Communication and transfer of electricity
between EV and grid, enabled by use of certain technologies
 Research shows:
 Two-way communication devices can enable batteries to store power
and sell it back to the grid in response to signals from grid operators.
 In pilots, provision of frequency regulation (balancing generation and
load) currently valued at $30-$40 per MWh, just for making the
resource available.
 Near-term possibilities for fleets: USPS interested in converting to
electric vehicles and partnering in a V2G pilot with ISOs/RTOs
 Large benefits seen even with one-way power flows to grid-integrated
vehicles (GIV): ISO can control time of charging and power level, and
shut off power in times of emergency.
Efforts in Other Countries
 Denmark: Edison V2G project will store excess wind energy when
plentiful and feed back to grid during low-production periods
Portugal aims to establish nationwide network of EV charging
stations by end of 2011
Spain: Goal of having 250,000 EVs on the road by 2014 (85% in
Israel expected to launch EV charging infrastructure in 2011
Japan: Auto companies, utility working to standardize fastcharging stations
Ontario, Canada: As of July 1, rebates of $5,000 - $8,500 to first
10,000 individuals/businesses who purchase or lease a plug-in EV
Policy Suggestions to Consider
 In recent conversations with stakeholders and academics,
CSG/ERC received these recommendations, among others:
 Special electricity pricing needed for EV charging, including
discounted off-peak pricing
 Pilots in San Diego, CA; HI
 Consider ways to replace lost revenue from gas taxes. Example: VMT
 Need to incentivize V2G pilots for public and commercial fleets
 States should codify net metering for V2G capabilities
 Example: Delaware net-metering law
 Eventually, important to create secondary battery market for reuse in
stationary storage applications
 Bottom line: Policymakers should be planning now to facilitate
adoption of EV technologies that could prove game-changing for the
power system going forward.

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